Interview with Hyperdynamic Corp’s CEO March 30, 2007
Posted by Andy Robinson in : Company Profile , 1 comment so farMy contributor Sona Kalra, founder of Commodity Investors, had an exclusive interview this past week with the CEO of a small oil and gas exploration company named Hyperdynamic Corporation (HDY). I am not recommending this one to my readers at this point, but I think it has some potential and I will keep my eye on it. They obtained an agreement from the government of Guinea to explore offshore, but they currently need a partner for financial backing in order to drill. They are pretty far from turning a profit, but if the financing comes through later this year and a drilling date is scheduled, I will reevaluate their potential as a high-risk, high-rewards investment. Click on this link to view the interview from CommodityInvestors.com.
Time to look at dividends again March 29, 2007
Posted by Andy Robinson in : Market Research , 1 comment so farAs a value investor, I like high-quality dividend payers in times of uncertainty in the economy. This morning, we did receive good news on the economy. It turns out that fourth quarter GDP growth came in at a solid 2.5% annual rate, revised upwards from the original 2.2% (click here for link to GDP news story). So we’ve got decent growth, albeit slowing, with an inflation rate that remains stubbornly higher than the 1-2% Federal Reserve “comfort zone.” In this environment, let’s look towards dividends as a buffer against some of the market volatility ahead.
Tax Freedom Day on April 30th! March 28, 2007
Posted by Andy Robinson in : Off Beat , 1 comment so farThe Tax Foundation has been calculating the US tax burden annually since 1937 and analyzing the length of time it takes citizens to work to pay for various types of taxes. They do this by comparing gross tax receipts with the income statistics. This year, the last day that we’ll be working for Uncle Sam and our state and local governments is April 30th, two days later than last year. The foundation’s web site (click here for link) offers more detailed information if you suffer from low blood pressure this morning. In honor of tax freedom day, let’s look at reducing our current tax burden by increasing our 401k plan (or IRA, SEP, etc.) contributions, which are tax deferred, or reducing our future tax burden by funding a Roth IRA.
The Rising Threat of Socialism in South America March 27, 2007
Posted by Andy Robinson in : Market Research , 1 comment so farLed by the radical socialist President Chavez, a new and dangerous trend is starting to gain traction in the South American economy. It is worth knowing the politics behind what is taking place in Venezuela and beyond in order properly gauge the risks of investing in South American emerging markets.
Saving for College March 26, 2007
Posted by Jenna Robinson in : Educational , add a commentAmerican families who want to save for future college expenses now have more options than ever before. Traditional investment options—savings accounts, taxable investment accounts, annuities, and U.S. Savings Bonds—are now joined by powerful new investment vehicles including Section 529 college savings programs and Coverdell education savings accounts.
A preview of this week’s key economic data March 25, 2007
Posted by Andy Robinson in : Market Research , 1 comment so farThis week there are several bits of key economic data that will shed light on the state of the US economy. The main concern of economic pundits is that the slowdown in the housing market and the problems in the lower quality mortgage loans will hurt consumer spending and send us into a recession. Last Friday, we received good news from a report from the National Association of Realtors that stated that existing home sales increased by 3.9% in February. This may suggest a bottoming of the slowdown in the housing market.
Iran back in the news March 23, 2007
Posted by Andy Robinson in : News , add a commentThere’s some escalation in tensions due to Iranian troops capturing 15 British marines. See the news story at this link to a post from TheStreet. I’d like to refer back to my article from a few days ago entitled Can Iran take a bite out of your portfolio? This troop seizure is not going to help matters in coming to a diplomatic solution over Iran’s nuclear ambitions, so if you haven’t read my earlier article take this opportunity to do so.
Markets clear…until Congress gets involved! March 23, 2007
Posted by Andy Robinson in : Market Research , 1 comment so farUntil today I have been fairly comfortable that the hullabaloo over the sub-prime mortgage lending would not significantly impact the broader market. The sub-prime mortgages were those offered to borrowers with dubious credit and income levels. I was not unduly concerned, that is, until the turkeys in Congress started holding hearings to figure out what they can do to “fix” these awful problems. In their infinite wisdom, they would like to extend their oversight further into the lending industry in order to prevent lending standards and practices that they deem unsuitable.
Review of Ultra Pretroleum (UPL) March 22, 2007
Posted by Andy Robinson in : Market Research, Company Profile , add a commentThis is an article that I posted on CommodityInvestors.com on 3/22/07. Click on this link to my post to read about a great growth story in the oil and gas business.
Don’t Rely on Social Security! March 22, 2007
Posted by Andy Robinson in : Educational , add a commentIf this article from MSN Money entitled Could you Survive on Social Security doesn’t motivate you to save then nothing will. The amount of income that social security payments replace is fairly low for medium to high income-earners. Also, if your retirement age is fairly distant then I wouldn’t trust the replacement figures in this article. The replacement rates will probably be adjusted downwards due to the fact that over the next couple decades social security obligations will exceed the amount of taxes collected.